The first quarter was a busy one for Insight Communications Company. The cabler transitioned its cable modem customers to its own network, while posting revenue in excess of the Street's expectations.
The company reported revenue of $192.2 million, which beat analysts' consensus estimate of $186.4 million, according to Thomson Financial/First Call.
Insight ended the quarter with 1.7 million revenue-generating units, up from 1.5 million in Q1 2001. The RGUs include Insight's basic, digital video, high-speed data and telephone customers. The addition of new services drove up per-customer revenue in several categories. The average monthly modem revenue per customer increased $1.31, and monthly digital revenue per customer was up $1.49 compared to the same quarter last year.
During the quarter, Insight completed the transition of its cable modem customers from the Excite@Home network to Insightbb.com. As a result, the company added 6,400 modem customers, which is double the increase posted in the previous quarter. Excite@Home filed for bankrupty in September, and to avoid the immediate shutdown of the network, Insight forked over $10 million to the bankrupt company. The agreement kept the network lit until Feb. 28.
Capital expenditures totaled $50.3 million. Looking ahead to full-year 2002, Insight expects to spend $300 million. The company will fund these expenditures through existing sources and borrowings under its credit facility. As of 1 p.m. EDT, Insight shares were up 95 cents, or 6 percent, to $16.56.
Earlier this week, Insight announced a five-year VOD partnership with TVN Entertainment Corp. As part of the deal, TVN will deploy docking stations to Insight headends to enable satellite delivery of content to Insight's VOD servers. TVN will encode and archive content, securely transport via IP over satellite, monitor the network, manage the VPN return channel and administer digital rights management, all from one location.